Has Facebook CEO Mark Zuckerberg Lost His Mind?

Zuckerberg is a brilliant CEO, but the $2 billion acquisition of a development-stage company smacks of doing something simply because he can.

There it goes again. Last week, Facebook announced it would use its formidable currency—at $60.01, the shares trade at 48 times this year's expected profits—to buy a company that doesn't make any money. Oculus VR, based in Irvine, Calif., is working on the development of goggles that, strapped to your head, let you see a virtual world.

One wonders if Facebook (ticker: FB) CEO Mark Zuckerberg has been wearing an early prototype of the device, since this is the second time in six weeks that his company has paid a sizable...